Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 13 of chapter 30A of the General Laws is hereby amended by adding the following paragraph:-

Any board of registration operating under the provisions of chapter one hundred and twelve, upon receiving a written list of names of educational loan defaulters from the Massachusetts Education Financing Authority established pursuant to section four of chapter fifteen C or the Massachusetts Higher Education Assistance Corporation created under chapter two hundred and ninety-eight of the acts of nineteen hundred and fifty-six, shall deny issuance of a professional or occupational certificate, registration, license, or authority to any applicant who is in such default on an educational loan made under any of the programs administered by said authority or corporation, hereinafter referred to in this paragraph as the loan agency. Any such applicant so denied a certificate, registration, license or authority due to such applicant's default on an educational loan shall be informed by the applicable board of registration of the availability of the following review procedure provided by this paragraph. Within thirty days of the receipt of such denial, the applicant may request the loan agency which notified the board of registration of the default to conduct a review of the applicant's alleged loan default. Upon receipt of a request for review, the loan agency shall notify the board of registration that the applicant has requested a review, whereupon the board of registration shall provisionally grant the certificate, registration, license or authority until the board of registration is notified by said loan agency of the disposition of the review. Such review shall include a determination that said loan agency has complied with all federal requirements applicable to student loan defaulters, and any further requirements specified by the secretary of consumer affairs and business regulation. If the educational loan agency which conducts the review determines that the notice of default was in error, or enters into an arrangement for repayment or enters into any other arrangement with the applicant, the loan agency shall promptly notify the applicable board of registration and such board shall issue the certificate, registration, license or authority to the applicant, provided the applicant meets all other requirements therefor. If the loan agency determines that the notice of default was warranted, the loan agency shall notify the applicable board of registration, to revoke said provisional certificate, registration, license or authority previously issued. The secretary of consumer affairs and business regulation is hereby authorized to promulgate regulations pursuant to sections one to eight, inclusive, to enforce the provisions of this paragraph.

SECTION 2. Section 61 of chapter 112 of the General Laws is hereby amended by inserting after the first paragraph the following paragraph:-

Each such board of registration or examination, upon receiving a written list of names of educational loan defaulters from the Massachusetts Education Financing Authority established pursuant to section four of chapter fifteen C or the Massachusetts Higher Education Assistance Corporation created under chapter two hundred and ninety-eight of the acts of nineteen hundred and fifty-six, shall suspend, revoke or cancel a professional or occupational certificate, registration, license, or authority issued by it if the holder is so listed as being in default on an educational loan made under any of the programs administered by such authority or corporation, hereinafter referred to in this paragraph as the loan agency. Any such holder whose certificate, registration, license or authority is suspended, revoked or cancelled pursuant to this paragraph because of such holder's default on an educational loan shall be informed by the applicable board of registration of the availability of the review procedure provided by this paragraph. Within thirty days of the receipt of notice of such suspension, revocation or cancellation, the holder may request the loan agency which notified the board of registration of the default to conduct a review of the applicant's alleged loan default. Upon receipt of a request for review, the loan agency shall notify the board of registration that the applicant has requested a review, whereupon the board of registration shall provisionally cancel the suspension, revocation or cancellation of the certificate, registration, license or authority until the board of registration is notified by said loan agency of the disposition of the review. Such review shall include a determination that said loan agency has complied with all federal requirements applicable to student loan defaulters, and any further requirements specified by the secretary of consumer affairs and business regulation. If the loan agency which conducts the review determines that the notice of default was in error, or enters into an arrangement for repayment or enters into any other arrangement with the applicant, the loan agency shall promptly notify the applicable board of registration and such board shall reinstate or renew the certificate, registration, license or authority of the holder, provided the holder meets all other requirements therefor. If the loan agency determines that the notice of default was warranted, the loan agency shall notify the applicable board of registration to suspend, revoke or cancel said certificate, registration, license or authority. The secretary of consumer affairs and business regulation is hereby authorized to promulgate regulations pursuant to sections one to eight, inclusive, of chapter thirty A to enforce the provisions of this paragraph.